Molson enters into venture to develop cannabis beverages

By Ross Marowits The Canadian Press Wed., Aug. 1, 2018 Molson Coors Canada is seeking to disrupt the country’s beverage industry by entering into a joint venture to develop non-alcoholic cannabis-infused products that could give it a leg up as more countries legalize the narcotic. The business arm of Molson Coors Brewing Co. said Wednesday the venture with The Hydropothecary Corporation, now branding itself as HEXO, will be a stand-alone startup with its own board and management team, with Molson Coors Canada having a 57.5 per cent interest and HEXO holding the balance. “While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences,” said Molson Coors Canada president and CEO Frederic Landtmeters. Although the impact of cannabis on beer consumption is unproven and difficult to evaluate until legalization takes place, the brewer believes consumer acceptance of cannabis and cannabis beverages is going to increase. “We believe, potentially, it’s got really significant potential and we’re going to learn a lot and if other markets start to open up in due course and this becomes federally legal then we’ll be in a good place at that point in time,” Molson Coors CEO Mark Hunter said during a conference call about its second-quarter results. Article Continued Below Share your thoughts He said there are no plans to sell beverages to U.S. states that have legalized cannabis. The hundreds of… [Read full story]